Congratulations, Baihaki Hakim<\/p>\n
First, I would like to congratulate you on your appointment as
\npresident director of state-owned oil and gas company Pertamina.
\nAs you are a former president director of PT Caltex Pacific
\nIndonesia, the largest producer among the production-sharing
\ncontract (PSC) companies in Indonesia, I believe no one will
\ndoubt your knowledge of the oil business as well as your contacts
\nin the industry.<\/p>\n
In his speech prior to your installment, President Abdurrahman
\nWahid instructed you to take note of four things in doing your
\njob: to clean up corruption and collusion, improve its
\nefficiency, expand its production capacity and make Pertamina an
\ninternationally competitive oil company.<\/p>\n
Based on the time frame, your assignments could be elaborated
\nas follows: In the short term, maybe in one or two years, you
\nhave to be able to eradicate corruption and collusion, while at
\nthe same time improve the company's efficiency.<\/p>\n
In the medium term, over two years from now, you would have to
\nexpand production capacity.<\/p>\n
In the long term, maybe more than five years, if you are still
\nin the position, we could see whether you can make Pertamina an
\ninternationally competitive oil company.<\/p>\n
I suggest you concentrate on the short-term steps first. As a
\nnewcomer on the board, you are free of corruption and collusion,
\nand therefore you would not feel any compunction in taking
\nresolute actions against Pertamina personnel where necessary.<\/p>\n
Also, Mr. Ainun Naim as a new finance director, will not cover
\nup financial data that indicates corruption. Success in wiping
\nout corruption and collusion will drastically change Pertamina's
\ncorporate culture, which of course will make it easier for you in
\nperforming your other tasks.<\/p>\n
To improve efficiency, I would like to suggest one thing:
\nPlease give extra attention to PSC companies' cost recovery. In
\n2000, the budgeted figure will be around US$2.5 billion. Using an
\nexchange rate of Rp 7,000 to the dollar, the amount equals Rp
\n17.5 trillion.<\/p>\n
If PSC companies could enhance efficiency by 10 percent, which
\nI am sure they could, we would gain additional revenue of Rp 1.7
\ntrillion. Being cautious does not mean having to be involved
\ndeeply in the day-to-day PSC companies operations; on the
\ncontrary, Pertamina should give more authority to the firms.<\/p>\n
As you are a former executive of a PSC company, I believe you
\nknow much about which part of Pertamina's involvement could be
\nremoved. It's time to review the function as well as the
\norganization of the Foreign Contractors Management Body (BPPKA),
\nif you really want to enhance overall efficiency. Your
\nexperience, professionalism and integrity will lead you in doing
\nthe job properly.<\/p>\n
M. SULHAN ASKANDAR<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/congratulations-baihaki-hakim-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }